V Reverse Mortgage

Objective
To meet the financial needs of senior citizens owning self acquired and self occupied house property

Purpose of Loan

For generating cash flow/to supplement pension/other income for day to day requirements, renovation/up gradation of house, to meet medical expenses, and for repayment of outside institutional liabilities.

Eligibility for loan

  • Should be a Senior Citizen of India, (above 60 years of age) as on the date of application. Married couples will be eligible as joint Borrowers, subject to at least one of them being 'above 60 years of age' and the age difference not being more than 10 years between them.
  • Should be the owner of a self-acquired, self-occupied residential property (house or flat) located in India, with clear, marketable title and free from any encumbrances. Loan is not available against ancestral property or commercial property.
  • NRIs and PIOs are not eligible.

Quantum of the Loan
The minimum qualifying loan amount shall be Rs 2.00 lacs and the maximum qualifying amount of loan is restricted to Rs.100 lacs.

Other charges

Charges towards, legal opinion, valuation of residential property, processing charges, security inspection charges (annually), insurance, Registration charges etc., as applicable to V-Home Loan Scheme. [Refer Annexure-I given below]

Rate of Interest : 11.00% (Fixed)
 

Margin
20% on the realizable value of residential property.

Security
Mortgage of residential property where the applicant is living/self occupied.

Eligible End use of funds
The loan amount can be used for the following purposes:

  • For up gradation, renovation and extension of residential property.
  • For uses associated with home improvement, maintenance/insurance of residential property
  • To meet Medical, emergency expenditure for maintenance of family
  • For supplementing pension/other income.
  • For repayment of an existing loan taken against the residential property to be mortgaged.
  • To meet any other genuine financial needs.

Tenor of the Loan

  • Minimum tenor of the loan is ' 7' years and with a maximum tenor of '15' years.
  • The tenure may further be extended on roll over basis with a maximum period of '15' years or till survival of the borrower/s subject to advance value of the property on a rollover basis

Nature of disbursement.
Any or a combination of the following:[Refer Annexure-II]

  • Periodic monthly payments by way of annuity.
  • Part of loan in lump-sum( not exceeding 30% of maturity value i.e., loan amount at the end of the tenor) the eligible amount of disbursement shall be the present value (discounted value) of such lump sum and the remaining/ balance amount in monthly installments by way of annuity.

Repayment
The loan shall become due and payable

  • At the end of tenor of the loan opted by the borrower.
  • Outstanding balance exceeding the Equity to Value Ratio (EVR).
  • When the last surviving borrower dies or would like to sell the home, or permanently move out of the home to an institution for care of the aged people or move to relatives place.

Prepayment of Loan by Borrower(s)

  • The borrower(s) will have option to prepay the loan at any time during the loan tenor.
  • There will not be any prepayment charges/penalty for such prepayments. 

Closure of Loan
The legal heirs of the borrower (s), after the death of borrowers (both spouses), or his /her /their estate, will have the option, to settle the loan amount along with accumulated interest, without sale of residential property.

Settlement of loan, along with accumulated interest, shall be met by the proceeds received out of sale of residential property and surplus if any, shall be paid to the legal heirs. The loan will become due for recovery and payable six months after the death of the last surviving spouse.

Provision for Right to Rescission
After the documents have been executed and loan transactions finalized, the senior citizen borrower (s) shall be given time up to ten days to cancel the transaction by way of “ the right of rescission” for any reason whatsoever.

Annexure - I

  • Processing & Inspection Charges as applicable
  • Registration charges & Memorandum charges: As applicable to the respective States stamp Act/duties.

Annexure - II

Rate / Months 10.50%
Annuity in Rs
Rate / Months 10.50%
Annuity in
Rs
Rate / Months 10.50%
Rs
Rate / Months 10.50%
Annuity in Rs
60 1265 121 465 60 59290 121 34850
61
1235
122
460
61
58775
122
34545
62
1210
123
450
62
58265
123
34245
63
1185
124
445
63
57760
124
33950
64
1160
125
440
64
57260
125
33655
65
1140
126
435
65
56765
126
33365
66
1115
127
430
66
56270
127
33075
67
1095
128
425
67
55785
128
32785
68
1075
129
420
68
55300
129
32505
69
1050
130
410
69
54820
130
32220
70
1030
131
405
70
54345
131
31940
71
1015
132
400
71
53875
132
31665
72
995
133
395
72
53405
133
31390
73
975
134
390
73
52940
134
31115
74
960
135
385
74
52485
135
30850
75
940
136
380
75
52030
136
30580
76
925
137
375
76
51575
137
30315
77
905
138
375
77
51130
138
30050
78
890
139
370
78
50685
139
29790
79
875
140
365
79
50245
140
29535
80
860
141
360
80
49810
141
29275
81
845
142
355
81
49380
142
29025
82
830
143
350
82
48950
143
28770
83
820
144
345
83
48525
144
28520
84
805
145
340
84
48105
145
28275
85
790
146
340
85
47685
146
28030
86
780
147
335
86
47275
147
27785
87
765
148
330
87
46865
148
27545
88
755
149
325
88
46455
149
27305
89
740
150
320
89
46055
150
27070
90
730
151
320
90
45655
151
26835
91
715
152
315
91
45260
152
26600
92
705
153
310
92
44865
153
26370
93
695
154
305
93
44475
154
26140
94
685
155
305
94
44090
155
25915
95
675
156
300
95
43710
156
25690
96
665
157
295
96
43330
157
25465
97
655
158
295
97
42955
158
25245
98
645
159
290
98
42580
159
25025
99
635
160
285
99
42210
160
24810
100
625
161
285
100
41845
161
24595
101
615
162
280
101
41480
162
24380
102
605
163
275
102
41120
163
24170
103
595
164
275
103
40765
164
23960
104
590
165
270
104
40410
165
23755
105
580
166
265
105
40060
166
23545
106
570
167
265
106
39715
167
23345
107
565
168
260
107
39370
168
23140
108
555
169
260
108
39030
169
22940
109
545
170
255
109
38690
170
22740
110
540
171
250
110
38355
171
22545
111
530
172
250
111
38020
172
22350
112
525
173
245
112
37690
173
22155
113
515
174
245
113
37365
174
21960
114
510
175
240
114
37040
175
21770
115
505
176
240
115
36720
176
21580
116
495
177
235
116
36400
177
21395
117
490
178
235
117
36085
178
21210
118
485
179
230
118
35770
179
21025
119
475
180
230
119
35460
180
20845
120
470
 
 
120
35155
 
 

 

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